Archive for November, 2007

Brant Barton Reviews Significantly Influence Offline Purchases

November 30th, 2007 by Brant Barton Co-Founder and Chief Innovation Officer

comScore and The Kelsey Group released yesterday the results of a new research study on the influence of online consumer reviews on offline purchases.  The press release alone is full of interesting data, but I've summarized key takeaways below.

Specifically, the study looks at the influence that online consumer-generated reviews for offline services (e.g., restaurants, hotels,  automotive, medical, legal, etc.) has on purchases of those services. 

  • Nearly 25% of surveyed Internet users reported reading online reviews prior to paying for an offline service!  
  • Online reviews were a significant purchase influence for approximately three-quarters of review users in all eight offline service categories.  Hotels ranked the highest at 87%, while legal services ranked the lowest at 73%. 
  • Impressively, 97% of users that attributed their purchase decision to a review felt that the review was accurate. 
  • Review users felt that reviews from fellow consumers were more influential than those authored by professionals. 
  • Depending on service category, users were willing to pay from 20% more (home) to 99% more (legal services) for services with a consumer quality rating of 5-stars (Excellent) versus just 4-stars (Good).

These are amazing statistics.  The Web is still primarily a research medium but multi-channel brands still struggle to quantify the impact that online content has on offline purchasing behavior.  Reviews are a useful bridge, since both online and offline purchases can be attributed back to specific reviews using web analytics tools, buyer surveys, customer feedback at the point-of-sale, and other means. 

While many local service providers may struggle to engage their customers to review their purchases online, due simply to size and scale challenges, the global and national brands behind those local providers – major restaurant and hotel chains, automotive service franchises, healthcare providers – should take steps to empower their local business affiliates with tools to capture consumer reviews and measure their influence.  

Sam Decker Why Customers Write Reviews

November 28th, 2007 by Sam Decker Chief Marketing Officer

Because reviewers want to help others…that's the short answer.

We just announced the results of a study we executed with Keller Fay Research to understand the intentions and motivations behind reviewers. Overwhelmingly, the survey found, reviewers are motivated by goodwill and positive sentiment. The summary of the findings:

  • Fully 90 percent write reviews in order to help others make better buying decisions
  • More than 70 percent want to help companies improve the products they build and carry.
  • 79 percent write reviews in order to reward a company
  • 87 percent of the reviews are generally positive in tone (self reported, but matches our actual findings of the J-Curve where 80% reviews are positive)

Why is this important?

  • To understand the motivations behind customers’ taking the time to post user generated content is to understand how to reward them and encourage others to participate.
  • It confirms why reviews are so positive – customers believe they help others more by sharing products they loved.
  • It tells us that these reviewers have positive feelings towards the companies that created products they love. And it says that companies can benefit far more than just a review from these influential, participatory customers.
  • There are great opportunities for CRM / segmentation strategies and loyalty programs for both retailers and manufacturers.

And a surprising finding:

Prior to writing the review preceding taking this survey, only 19 percent of reviewers had posted on independent product review sites such as ePinions or CNET, while 66 percent had posted to a retailers’ site after an OFFLINE purchase, compared to 34% who had previously posted due to an online purchase. This underscores that customers are more apt to post reviews from the retailers from which they buy. Further, customers are likely to return to the retailer's site to write a review from an offline purchase. Evidence of these results: from some of our clients we've found as much as 30% of all reviews are from in-store customers.

Sam Decker Review Content and Natural Search Segmentation

November 19th, 2007 by Sam Decker Chief Marketing Officer

By Jeff Watts, Bazaarvoice Search & Syndication Product Manager 

I love to watch the kid at the fountain drink machine who puts cola, root beer, and orange drink in the same cup.  It seems like a good idea, but whether the kid admits it or not, the mixture tastes gross — worse than any of the three would taste on its own.  This is similar to the way that some of us forget about segmentation in our search engine optimization.

One of the best ways to think about natural search segmentation is that you (the marketer) are in partnership — not in competition — with the search engine.  You want to publish interesting, unique content and you want to make it as easy as possible for the search engine to determine the meaning or "theme" of that content.  If you truly have the best piece of content on the web for a given search query, both you and the search engine want your page to rank number 1.  Segmenting content means that you publish content with different themes on separate pages.

Consider the venerable product page.  Most product pages contain many of the same elements: the name of the product, a description of the product, a list of product specifications, a list of product accessories or services, and pricing, shipping and contact information, to name a few.  Marketers invest much time and expense in optimizing each page for product-specific search queries and in editorial review to ensure accuracy, to correct grammatical mistakes, and to ensure brand consistency.  When a search engine crawls a product page, it can tell that every word on the page is related to the product, spelled correctly, and written in the same tone as the rest of the site, so it is easy for the search engine to determine the theme of the page.

Now, suppose the marketer decides to add a new type of content, such as product reviews, to the product page.  Intuition says that, because review content is product-related, it should live inline on the product page.  From a search engine standpoint, though, this is not a good idea — you will actually drive more traffic by segmenting your content into two parts.  One content segment focuses on "product" content, and the other focuses on "review" content.

To understand why, consider three ways review content differs from product content:

  1. Review content is written by customers of your product.  This means the size of the contributor base (and thus the variance in tone) is orders of magnitude larger for reviews than for products.
  2. Review content goes through little to no editorial review, which means that it will almost always contain more spelling or grammatical mistakes than formal product content.
  3. Review content is focused on a customer’s experience with a product, so it contains more "personal" statements like "I did …" and "My experience was …"

Does this mean that review content is bad or inferior to product content?  Of course not — it is just different content written in a different style by different people to accomplish a different objective.  Standalone review content presents a very consistent theme to the crawling search engines, just as standalone product content does.  Because each type of content has its own theme, each will ultimately rank well for its own set of search phrases. 

Although a much larger percentage of review content search referrals come from phrases that include words like "reviews", one of my favorite examples of how review content drives traffic comes from a misspelling:  as of this writing, a page on reviews.overstock.com ranks number 1 on Google for a search on "odasity of hope".  Overstock actually receives referrals for this search phrase, but only because their searchers and one of their reviewers are misspelling the same word ("audacity").  Such a misspelling would be edited out of formal product page content, but it is a terrific way to reach down further into the long tail of search using review content.

What would happen if this review content was not segmented onto separate pages, like the one on reviews.overstock.com?  The product content and the review content would dilute one another and the resulting theme would not be as easily discernible as the theme of either of the two pages standing on their own.  Failure to segment different themes will result in an opportunity cost of missed traffic, or worse, cannibalization of existing traffic.  Segmenting different themes not only increases your aggregate traffic, but also provides you an easy opportunity to share links between two very related pages — the product page and the review page for that product.

I encourage you to identify segments in your content, just as you might identify segments in your markets.  You will be happy with your increase in search traffic, and we will toast your success — you with your cola and me with my root beer — separate cups of course.

Wayne Stribling Home Depot Canada shares their experience with Ask & Answer

November 12th, 2007 by Wayne Stribling Former VP of Client Services

Today's blog was contributed by Tung Huynh, one of our Community Managers dedicated to helping clients leverage the Bazaarvoice solution. As a Community Manager, Tung works closely with his clients to help them achieve their community engagement initiatives. Here, Tung interviews Paige Malling, an Interactive Marketing Manager for The Home Depot Canada, on their recent success with Ask & Answer, which they enthusiastically call Answer Depot.

The Answer Depot

1. Tell us a little bit about Answer Depot.
The Answer Depot is something that we’re all very proud of at HomeDepot.ca. Our version of Ask & Answer allows HomeDepot.ca community members to ask questions and share answers about products, product categories and general home improvement topics. It lives on the category level which lets our community members discuss everything from the best charcoal grill to the newest faucet design.

2. What is your role with Answer Depot?
As Interactive Marketing Manager, I am responsible for overseeing all advertising and community initiatives for HomeDepot.ca including Answer Depot. However, I’m not the only one involved in Answer Depot because this community extends far beyond marketing for us. The information that we gather through Answer Depot is valuable to many members of our team including merchandizing, operations, user experience – just about everyone!

3. How has The Home Depot's community responded to the launch of Answer Depot?
Our community is in love with Answer Depot. Our volume of questions is growing very quickly and customers love the interaction that Answer Depot affords them. The thing that delights us the most is the expertise and depth of knowledge of those answering questions. We have community members who are retired plumbers, professional contractors, electrical experts – it runs the full gamut of experts. We also have The Home Depot suppliers weighing in and helping answer questions.

4. In general, how long does an "asker" wait before receiving an answer?

Generally, an answer is posted within one or two days of the question appearing on the site.

5. Does The Home Depot ever answer any questions?
For us, the Answer Depot is a tool for HomeDepot.ca community members to discuss amongst themselves about home improvement issues. We only participate when we feel that we can answer a question that community members cannot, things such as product availability or delivery, etc. But when we do weigh in to a conversation, we make sure to properly identify ourselves as members of The Home Depot team.

6. How do you think a Home Depot customer views this relative to asking their questions "the old-fashioned way" (i.e., sending you an email or calling you)?
I think a different kind of need is satisfied with Answer Depot. Customers are not using Answer Depot to resolve customer service issues; they are using it to ask questions and learn from each other. Many customers like to ask others about a product before making a purchase. They can look at all the specifications, warranties and packaging at our site, but ultimately many of us like to have the chance to ask someone else what they think of a product, such as, “Which of these table saws works better?” The Answer Depot is allowing our customers to have this type of rich interaction without ever having to leave our website. It’s like a community meeting place.

7. What was The Home Depot's experience with the technical implementation of Ask & Answer?
The implementation was very smooth without any major glitches. We have also launched in French so we’ve been through the process twice.

8. What's one of the more interesting questions or answers you've come across?
My favourite questions are the ones that generate a lot of discussion and differing opinions. For example, someone asked “Do you need to close off the chimney when you put an electric fireplace in a real fireplace?” It was amazing how many different answers the customer received – some really good advice.

9. What's next for Answer Depot?
So many things! You’ll have to keep coming back to HomeDepot.ca to see; I’m not giving away all our secrets.

10. What advice would you give to other retailers on how to best leverage Ask & Answer?

Think hard about your objective for Ask & Answer and make sure to commit resources to it. You cannot just launch a program like this and walk away. Any online community needs to be nurtured and engaged.

Wayne Stribling Taking Word-of-Mouth Full Circle & Creating Brand Advocates with Figleaves.co.uk

November 5th, 2007 by Wayne Stribling Former VP of Client Services

Anna SkayaBy Anna Skaya, Community Manager

In the world of word of mouth communication, an underground movement of experts and enthusiasts is quickly becoming your loudest voice online. They connect, make suggestions, trade secrets, share best buys and stories, and come together as brand advocates – virtual spokespeople for your product. They are your biggest fans.

As a Community Manager, I am the face of Bazaarvoice to my clients, and help them increase their review volume by taking word of mouth full circle. I am their primary point of contact for marketing strategies, data analysis and reporting training, new product features, and of course, maximizing ROI with our solutions. I am personally responsible for the satisfaction of my clients, and we closely track our satisfaction levels each quarter. I am proud to say that the Client Services Team is relentless about client satisfaction and achieved a 4.6 out of 5 rating in our latest survey.

Our recent UK Case Study is a great example of how a retailer strengthened its online community with reviews. Figleaves.co.uk is a large online retailer of intimate apparel. Ratings and reviews allow this retailer to capture customers’ insights and opinions, and aids other shoppers in their purchasing decisions.

Six months after launch, we analyzed conversion and look-to-book rates by taking a closer look at specific products broken down by review volume and date. Overall, we found that products with reviews converted higher than those without, and review volume had a positive correlation to conversion. Additionally, look-to-book (product views/items sold) was down on items with reviews, meaning customers were finding more relevant information and buying sooner.

During a successful email campaign, Figleaves quoted one of their top reviewers in an email, calling attention to all the reviews she wrote and making her shine like a celebrity. The power of the individual has never been so great or so influential! Take it to the next level and solicit your best customers for positive word of mouth that spreads far and wide online. The more links you create between the reviewer and the company, the stronger the relationship becomes. That is why features like Ratings & Reviews and Ask & Answer are so powerful – they help create loyal advocates. By rewarding top reviewers with incentives and special recognition – like special coupons, free shipping, or even celebrity status – create brand ambassadors.

At Bazaarvoice, we help your customers build your business. Figleaves.co.uk took word of mouth full circle, allowing their customer’s voice to grow their business. We love that!

You can help your best customers become your biggest fans. 


 

Sam Decker Bazaar Halloween! (Photos)

November 1st, 2007 by Sam Decker Chief Marketing Officer

Happy Day-after Halloween! We wish you were here to help us eat some of the candy and leftover food from our annual Halloween Potluck! In addition to great food we had impressive costumers…superheroes, oversized walkman, Futurama characters, Jolly Green Giant, Ron Burgandy, and even imitations of each other. There were some lame costumes…like yours truly. My beautifully simplistic clown wig and nose combo got me named "Llamo the Clown"…or "Half-Ass Clown". But it was all fun.  Here are photos from the festivities on our Flickr page.